Debt Agreement – Make a Fresh Start by Knowing Your Best Option

Sep 20, 2016 |


It is bad enough to struggle and feel the stress of dealing with bad debt. But it becomes more so if your debt results in losing the properties you have worked hard to acquire. Fortunately, you have plenty of options to use to get you through your debt struggle. Debt agreement is one of these, which is the best option if you are after a more flexible solution. Unlike bankruptcy, a debt agreement allows you to have control over your finances. Also, it comes with plenty of ways you can pay off your debt. You simply have to consider which will work best under the circumstances.

What Makes Debt Agreement the Best Option for You?

As a flexible option, you won’t have to hand your income and assets to a trustee and have them sold to start paying off your debts. Hence, if you do not want to lose your home or some specific assets, going for this option is the best route for you to take. Depending on what you propose and if you gain the approval, your options of payment may include:

  • Selling off an asset you own depending on your preference,
  • Paying a lump sum installment
  • Paying off the debt within a specific period by installment, and more.

It is easy to benefit from such a flexible solution if you pass all eligibility requirements. If you do, your debt agreement administrator will immediately prepare your application. This entails working out your financial position and informing the lenders about your situation. Other benefits you will enjoy after gaining approval for the agreement include:

  • Getting enough time to pay off your debt
  • Reducing your overall debt by paying only a percentage of the amount owed
  • Freezing the interest on your unsecured verifiable debts
  • Avoid the possibility of declaring bankruptcy

Is It Worth It?

Yes, entering this form of agreement is worth it. However, there are still some things you need to be aware of. One example of these is the fact that this option is also a form of bankruptcy, which means that your name will appear on the National Personal Insolvency Index. This activity will remain in your credit file for 5 years, which may prevent you from borrowing more money. Also, if you want to make the process quicker, you will need a professional by your side. You will need a financial counselor and debt agreement administrators, which you need to choose well for your benefit. Many of the latter professionals often promote their services aggressively if not charge their clients with high fees for the services rendered. As a client, you don’t want to end up paying more for some services you really would not need. Having a financial counselor you can consult with will help ensure that you are making the best decision, and have the fresh start you need.

Posted in: debt consolidation

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